BELIZE: MINISTER OF NATURAL RESOURCES ON LAND TITLES AND

UNCLAS BELMOPAN 000505 SENSITIVE SIPDIS FOR WHA/CEN - ROIS BEAL, DAVID WOLFE E.O. 12958: N/A TAGS: PGOV PREL EPET BH SUBJECT: BELIZE: MINISTER OF NATURAL RESOURCES ON LAND TITLES AND OIL LEASES ¶1. (SBU) Summary: Charge and POLOFF met with Deputy Prime Minister and Minister of Natural Resources Gaspar Vega on December 3, 2008. Vega said he was working hard to eliminate the backlog of over 5,000 land transfer and title cases inherited from the previous government. He estimated it will take two years to clear these old cases while keeping up with current ministry services. He discussed his strategy to settle the dispute over leases for two oil exploration blocks that has carried forward from the previous government. Vega also noted that his United Democratic Party (UDP), after ten months in power, was doing well. End Summary. ¶2. (SBU) Charge and POLOFF met with Deputy Prime Minister and Minister of Natural Resources Gaspar Vega on December 3, 2008. On the way into his office we noted that the waiting room and hallway were full of people, many of them waiting to talk to Vega about resolving their land title difficulties. Vega was friendly and noted that three of his children were born in the United States. ¶3. (SBU) Land Tenure: Vega indicated that since he took office in February 2008 he has been working to eliminate the backlog of over 5,000 land transfer and land title cases carried over from the Peoples United Party (PUP) administration. He estimated it will take two years to process these cases at the current pace while keeping up with new cases as they come in. These efforts are slowed down by Vega's requirement that land transfers from the GOB in the last year or so of the PUP administration be audited. He said there have been several public announcements made asking purchasers to contact the Lands Commissioner to show receipts for payment or to pay the GOB for lands they wish to have transferred. Note: The GOB will sell a small parcel of land to any Belizean citizen, on a one-time basis, at a price well under the market. End Note. Vega said the audits were needed to restore his confidence after he found many anomalies in the previous government's transfer of land and collection of fees. In some cases, the land contracts may be cancelled if purchasers do not appear at the Ministry or show valid payment receipts. He suggested that Americans who are having problems obtaining or transferring title in the lands registry should contact the Minister directly. ¶4. (SBU) Oil Exploration Leases: Charge raised the general issue of transparency in bidding for leases on oil exploration blocks and the specific case of the American firm, Lagoon Resources', bid on one lease block. During the PUP administration, tenders were let for leases on two exploration blocks and awarded in secret to two firms with ties to the PUP at prices lower than those bid by Lagoon Resources. Vega indicated that his administration (UDP) should have gone public with the information when they discovered there were two signed contracts for the disputed blocks. After the terms were revealed in the press, the GOB verbally re-negotiated with the lease holders, who then agreed to sign contracts amended to reflect higher (more advantageous to the GOB) rates. However, when Vega received the new contracts for his signature he found that his own ministry officials had inserted the lower rates. He immediately pulled the contracts and told the other parties he would only sign contracts at the higher rate that had been verbally agreed. Vega and the Prime Minister agree that if the two firms would not take the leases at the higher terms, the GOB would go public with the details of the affair and would offer the blocks for tender again. While this resolution would not help Lagoon Resources this time around, Vega assured the Charge that going forward he would ensure the tendering process would be carried out transparently. ¶5. (SBU) UDP Performance: Vega opined that the UDP was doing well since coming to power in February 2008. At a recent UDP convention in his district (Orange Walk) he noted greater turnout than ever before. He also said the UDP convention was better attended than the recent PUP convention despite Orange Walk being a former PUP stronghold. ¶6. (SBU) Comment: Vega is a successful business man who has entered government for the first time. He is aware that there is corruption in his ministry and said that although he would like to make a clean sweep, it would effectively shut down the ministry while new people learned their jobs. He is making changes selectively and looking carefully at everything he signs. We wish him well. End comment. DIFFILY